Deductions from trust income
What deduction can I claim?
Tax deductions for managed investment trusts can include management fees, specialist journals and interest on money you borrowed to invest.
If you made a prepayment of $1,000 or more in relation to your managed investment, there are special rules which may affect the amount you can deduct.
What can't I claim?
You can't claim a deduction for expenses incurred in deriving exempt income or non-assessable non-exempt income, such as expenses incurred in deriving distributions on which family trust distribution tax or trustee beneficiary non-disclosure tax has been paid.
You also can't claim a deduction for amounts the trust has already claimed or that only the trust can claim, for example, expenditure on landcare operations or water facilities.
You can claim tax deductions for costs related to managed investment trust income but not amounts the trust has already claimed or expenses incurred in deriving exempt income or non-assessable non-exempt income.